3 December 2007
Industry regulator Ofgem released a plan today for future gas distribution networks (GDNs) investment.
Around £5 billion is now set to be spent on the networks - £3.6 billion of which will go on replacing old gas mains.
According to the watchdog, the new expenditure limits - which equate to around £1 billion for each year of the deal - represent a 36% rise over the previous maximum.
Ofgem Chief Executive, Alistair Buchanan, said: "Our proposals are a fair deal for the GDNs and for customers, who will benefit from these investment increases.
"At the next review we will have five more years of evidence of how the GDNs can improve efficiency and would expect to see even more significant benefits for customers at that stage."
Ofgem's recommendations cover the 2008-2013 period.
Around 50% of total gas distribution networks in the UK are owned by the National Grid - who preside over a network of around 82,000 miles of pipes.
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.